The impact of evolving gold refining sector on small vs large refiners

As India’s gold refining industry evolves, small refiners like Satish Pratap Salunke face new competition from large industrial refiners. These small refiners, who are often family-owned and operate on a smaller scale, have been a critical part of the Indian gold sector for generations. They collect scrap gold from local jewellers, melt it down, and sell it back as gold bars. They are preferred by many jewellers for their speed and convenience, as they are located in almost every town in India. However, the big industrial refiners have been expanding rapidly in recent years, looking to tap into the recycling market dominated by the small refiners. With the support of favorable import duties on unrefined gold, these large refiners have increased their capacity significantly. They are now looking to import more unrefined gold and take over a larger share of the recycling market, aiming to make India a global hub for gold refining. The competition from these big players has compelled small refiners to invest in modern refining technology and improve their processes to stay competitive. The government has also introduced standards for gold bars, favoring BIS-approved refiners and pushing the industry towards greater organization and efficiency. While smaller refiners like Salunke remain confident in their customer base and quality of their refined gold, the shifting dynamics in the industry pose a challenge to their traditional way of doing business.